Sphinx Investors Lose Fight Over $263M Refco Deal

Law360, New York (October 5, 2007, 12:00 AM EDT) -- Investors for bankrupt Sphinx Managed Futures Fund SPC have come up short in their appeal of a district court’s order that affirmed a bankruptcy judge’s approval of Sphinx’s $263 million settlement with Refco Inc. over a preference dispute.

The U.S. Court of Appeals for the Second Circuit agreed with the U.S. District Court for the Southern District of New York that the investors lacked standing to contest or appeal the settlement.

Only Sphinx—not investors that contributed funds to Sphinx—could assert a claim against Refco, which emerged...